Lebak’s Merah Putih Cooperatives Empower Local MSME Growth

RRI.CO.ID, Lebak - The establishment of the "Merah Putih" Village and Subdistrict Cooperatives (KDKMP) is set to transform the rural economic landscape of Lebak Regency in Banten Province. This initiative will serve as a strategic lifeline for struggling micro, small, and medium enterprises (MSMEs).

Acting as more than just a retail provider, these cooperatives are being positioned as a powerful economic locomotive designed to bridge the gap between local production and wider market access. Imam Suangsa, the Acting Head of the Lebak Cooperatives and MSME Agency, emphasized that KDKMP is a multifaceted institution designed to revitalize the local economy.

“We believe KDKMP is designed not only as a provider of basic needs, warehousing, and health clinics, but also as a marketing bridge for MSME products,” said Imam in Lebak, Banten, on Friday, January 23, 2026.

As reported by Antara, Lebak Regency boasts a rich diversity of local products, ranging from culinary delights and agricultural goods to specialized crafts like Kalimaya gemstones, woven fabrics, batik, and souvenirs. Despite this variety, many local entrepreneurs have historically faced severe marketing hurdles, with some even facing the threat of permanent closure.

The KDKMP initiative aims to reverse this trend by ensuring every cooperative partners directly with small businesses in their respective areas.

“All MSME products will eventually be marketed through KDKMP. Therefore, every cooperative partners with MSMEs in their respective regions,” explained Imam, noting that 344 villages and subdistricts in Lebak now have legally recognized cooperatives following certification from the Law Ministry.

The practical impact of this cooperative model is already visible in the Cihara Subdistrict. Aep Saepudin, the Manager of KDKMP Pondok Panjang, reported that his branch has grown to 294 members, the majority of whom are small business owners.

The cooperative operates on a community-funded model, with initial mandatory savings of IDR 50,000 (approximately USD 3.15) and voluntary contributions of IDR 20,000 (approximately USD 1.25). This capital is then redistributed as loans to producers of local staples such as emping kaceprek, palm sugar, banana chips, and fish balls.

The abundance of raw materials in the region has allowed these businesses to scale rapidly under the cooperative's wing.

The economic scale of these village-level operations is significant. For instance, palm sugar production from the area has successfully reached markets in East Java.

With a monthly output of 10 tons priced at IDR 40,000 (approximately USD 2.37) per kilogram, this single commodity generates a turnover of approximately IDR 400 million (approximately USD 25,000) per month. Aep Saepudin expressed high confidence in the long-term social impact of this financial rotation.

“We are confident that KDKMP can grow the village economy while simultaneously eradicating extreme poverty,” said Aep.

To ensure the sustainability of this "Merah Putih" network, local authorities are calling for a united front between regional, provincial, and central governments. This synergy is viewed as essential for turning KDKMP into a dominant economic force at the grassroots level.

As infrastructure development continues, the focus remains on the swift completion of physical facilities to house these operations. “We hope that the KDKMP buildings currently under construction will be completed soon and can be operational immediately,” concluded Imam. ***

Source: https://banten.antaranews.com/berita/369382/dinas-lebak-sebut-kdkmp-jadi-penggerak-ekonomi-pelaku-umkm